Estate of Cole

240 Cal. App. 2d 324, 49 Cal. Rptr. 419
CourtCalifornia Court of Appeal
DecidedFebruary 23, 1966
DocketCiv. No. 23034
StatusPublished
Cited by17 cases

This text of 240 Cal. App. 2d 324 (Estate of Cole) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Cole, 240 Cal. App. 2d 324, 49 Cal. Rptr. 419 (Cal. Ct. App. 1966).

Opinion

240 Cal.App.2d 324 (1966)

Estate of ELODIE GRACE COLE, Deceased. CROCKER-CITIZENS NATIONAL BANK, Petitioner and Appellant,
v.
EARNEST F. SHREVE et al., Objectors and Respondents.

Civ. No. 23034.

California Court of Appeals. First Dist., Div. Two.

Feb. 23, 1966.

Bagshaw, Martinelli, Weissich & Jordan and A. E. Bagshaw for Petitioner and Appellant.

Samuel L. Fendel and Elke, Farella, Braun & Martel for Objectors and Respondents.

TAYLOR, J.

On this appeal [fn. 1] by Crocker-Citizens National Bank (hereafter referred to as bank) from a portion of an order dated April 30, 1965, the only question is the propriety of the court's action in removing the bank as executor of the will of Elodie Grace Cole, deceased (hereafter referred to as Mrs. Cole). The bank contends that the court erred in failing to comply with sections 521 and 524 of the Probate Code and in concluding that there was an adversity of interests between the beneficiaries of Mrs. Cole's will and *326 those of the will of her predeceased husband. Respondents, some of the residuary beneficiaries under both wills, contend that the court acted within its discretion in removing the bank, but erred in denying the petition of respondent, E. F. Shreve (Mrs. Cole's brother) for letters of administration with the will annexed.

The facts are not in dispute. On January 4, 1962, Mr. and Mrs. Cole concurrently executed formal wills in which each nominated the bank as executor. The couple was childless. Mr. Cole's will, so far as relevant, recited: that all of the assets of the couple had been acquired as community property but title had been taken in joint tenancy for purposes of convenience and that the parties had concurrently executed a written agreement converting into community ownership all of their assets other than money on deposit in the banks and proceeds from life insurance policies; that it was his intention to dispose of all the community assets of the parties; and that with the exception of the probate homestead and family allowance, Mrs. Cole elect whether she would accept the benefits of his will or claim her community property share. If Mrs. Cole elected to take her community property share, she was still to receive most of the personal property and the family home, but the other provisions of the will in her favor were to be of no effect, and the remaining provisions "be fully effective the same as if my wife had predeceased me."

Paragraphs Second and Fourth of Mr. Cole's will gave most of the personalty, as well as the family home, to Mrs. Cole. The family home was specifically bequeathed to others in the event she predeceased him. The rest of his estate was given to the bank in trust for Mrs. Cole for life. On termination, the trust was to be distributed substantially as follows: specific bequests of cash and stock of a total value exceeding $24,000 to specified friends and relatives; a specific bequest of certain securities of a value of over $17,000 to the Marin Council, Boy Scouts of America; and the residue, valued in excess of $84,000, to be divided equally among two sisters of Mr. Cole and two sisters and a brother of Mrs. Cole, or their respective spouses or heirs. Paragraph Sixth provided that if Mrs. Cole predeceased her husband or died concurrently, the trust would never come into existence and the property, which would have gone into the trust, was to be distributed in the same manner as provided for on termination of the trust. *327

Mrs. Cole's will recited the execution of the agreement converting assets into community ownership as well as the concurrent execution of the husband's will "the terms of which have my complete and unqualified approval." She devised the family home and its contents to her sister and brother-in-law subject to a life estate in Mr. Cole. She made specific bequests of certain securities identical to those provided for by Mr. Cole's will on termination of the trust. However, her will did not contain any provisions paralleling the bequest of securities to the Marin Boy Scouts or two bequests of cash provided by Mr. Cole's will on termination of the trust. [fn. 2]

If Mr. Cole predeceased his wife, the residue of her estate was to be divided equally among Mr. Cole's two sisters and her brother and two sisters, or their respective spouses or heirs, a disposition identical to that made by the residuary clause of Mr. Cole's will. Mrs. Cole's will contained no specific waiver of community rights or election to take by benefit of her husband's will.

Mr. Cole died on March 26, 1964, his will was admitted to probate, and letters testamentary issued to the bank. On August 18, 1964, prior to distribution of Mr. Cole's estate and before Mrs. Cole had received any of the benefits of his will, she died. Thereafter on October 5, 1964, by minute order, her will was admitted to probate and the bank appointed executor.

On February 15, 1965, the bank petitioned the court to determine heirship in each of the probate proceedings and asked that the court determine whether Mrs. Cole, by an oral agreement with her husband, had waived her community rights and elected to take the benefits of her husband's will, and then instruct the executor as to its duties in relation to such election. The Marin Boy Scouts filed a statement contending that there had been such an oral agreement. Respondents *328 filed statements contending: that Mrs. Cole had not made such an agreement or elected to take under the will and had not waived her community rights; that, therefore, her interest in the community property vested immediately upon Mr. Cole's death without the necessity of the probate proceedings; and that under these circumstances, the bank, as executor of Mr. Cole's will, had an interest adverse to its position as executor of Mrs. Cole's will.

After hearing the evidence on both sides at the combined heirship proceedings on April 9, 1965, the court entered a minute order to the effect that Mrs. Cole had not waived her community rights or elected to take under the husband's will, granted respondents' oral motion to remove the bank as executor of Mrs. Cole's estate, and appointed the public administrator as administrator with the will annexed. The court later signed findings and conclusions and on May 5, 1965, filed its formal order, noting that the bank, as executor of Mr. Cole's estate, had prepared an inventory of all the community property of both decedents, that one-half of this property was Mrs. Cole's, and that "by reason thereof the interests of the beneficiaries of the husband's will became adverse to the interests of the beneficiaries of the wife's will," and that further to protect Mrs. Cole's beneficiaries, the bank should not continue as executor of her estate while serving as executor of the estate of her predeceased husband.

Subsequently, another judge denied respondent Shreve's petition for appointment as administrator with the will annexed as premature and appointed the bank as special administrator with the will annexed of Mrs. Cole's estate, with general powers. No appeals have been taken from these orders.

On this appeal, we are concerned only with that portion of the court's formal order of April 30, 1965, removing the bank as the executor of Mrs. Cole's estate for the reason therein stated. Since the bank was not removed pursuant to any of the statutory grounds (Prob. Code, 521- 524), but in the exercise of the court's inherent power (Estate of Guzzetta, 97 Cal.App.2d 169 [217 P.2d 460

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Bluebook (online)
240 Cal. App. 2d 324, 49 Cal. Rptr. 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-cole-calctapp-1966.